CHARLOTTE, N.C. — An economist serving as an expert witness in Michael Jordan’s federal antitrust lawsuit against NASCAR testified that the stock-car racing organization caused hundreds of millions of dollars in financial harm to two teams involved in a long-running dispute over revenue sharing.
Edward Snyder, an economics professor with prior experience in the U.S. Department of Justice’s antitrust division, took the stand Monday and outlined why he believes NASCAR operates as a monopoly engaged in anticompetitive conduct. Snyder has previously testified in more than 30 cases, including high-profile sports litigation such as the NFL’s “Deflategate” matter.
According to Snyder’s analysis, NASCAR owes a combined $364.7 million in damages to 23XI Racing and Front Row Motorsports. His calculations were based on projected profits, reduced market revenues, and lost earnings from 2021 through 2024.
Snyder explained that his methodology compared NASCAR’s revenue-sharing structure with those used in other major racing series. He cited Formula 1’s model, which allocates approximately 45 percent of revenue to its teams, as a benchmark. By contrast, he testified that NASCAR’s charter system, introduced in 2016, provided teams with roughly 25 percent of shared revenues.
The lawsuit centers on NASCAR’s 2025 charter agreement, which teams say was presented on a take-it-or-leave-it basis. The 112-page document was delivered to teams on a Friday in September 2024, with a deadline requiring signatures the same day. Teams involved in negotiations have described the process as coercive, saying they were left with no meaningful alternative but to sign.
A NASCAR charter functions similarly to a franchise in other professional sports, guaranteeing 36 teams entry into each 40-car Cup Series race along with defined revenue rights.
Only two teams declined to accept the new agreement: 23XI Racing, co-owned by Michael Jordan and three-time Daytona 500 winner Denny Hamlin, and Front Row Motorsports, owned by Bob Jenkins.
Snyder testified that NASCAR’s market power stems from its control over nearly every aspect of the sport. In his view, teams have no realistic alternative marketplace in which to compete, because NASCAR controls the cars, the teams, and the racetracks. He pointed in particular to long-term exclusivity agreements with track owners that prevent venues from hosting rival racing series.
Before the charter system, Snyder noted, NASCAR typically operated under one-year track contracts. The shift to long-term exclusivity, he said, effectively closed the door on competing series and eliminated teams’ leverage in revenue negotiations.
NASCAR was founded in 1948 by the France family, which remains the organization’s controlling owner. Along with Speedway Motorsports, the family owns the majority of tracks on the Cup Series schedule. Snyder testified that this structure allowed NASCAR to insulate itself from potential breakaway leagues, forcing teams to accept below-market revenue terms and reducing their overall valuations.
Based on his analysis, Snyder concluded that 23XI Racing is owed $215.8 million, while Front Row Motorsports is owed $148.9 million, assuming each team held two charters during the relevant period. He also testified that, across all 36 chartered teams, NASCAR underpaid approximately $1.06 billion between 2021 and 2024.
Snyder told the court that NASCAR’s financial position would allow it to adapt to competitive threats if necessary. He cited the organization’s reported $2.2 billion in assets, an estimated $5 billion equity valuation, and its investment-grade credit rating. As a comparison, Snyder referenced the PGA Tour’s response to the emergence of LIV Golf, describing how the PGA increased compensation to retain its players.
He further testified that NASCAR generated roughly $250 million in annual earnings during the 2021–24 period and that the France family took approximately $400 million in distributions over those years.
NASCAR disputes Snyder’s conclusions, arguing that his reliance on Formula 1’s revenue model is flawed and that his damage estimates are overstated. Defense attorney Lawrence Buterman challenged Snyder’s methodology and asked him about NASCAR’s own expert witnesses. Snyder responded that the defense experts were among the most respected economists in the field.
Expert Witnesses Who Testified
Edward Snyder
Role: Plaintiff’s expert witness. Field: Economics / Antitrust
Credentials:
Professor of economics
Former official in the U.S. Department of Justice Antitrust Division
Veteran expert witness with testimony in 30+ cases
Prior high-profile testimony includes the NFL “Deflategate” litigation
Scope of Testimony:
Market monopoly analysis
Anticompetitive conduct
Revenue-sharing comparisons (NASCAR vs. Formula 1)
Damages calculations for 23XI Racing and Front Row Motorsports
Expert Witnesses Referenced but Not Yet Testified
Two defense economists (names not disclosed in the article)
Status: Expected to testify for NASCAR
Note: Snyder described them as “two of the best economists in the world,” but no identities or opinions were entered into evidence at the time of reporting.
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